Marketingof Fresh Produce

Rules, Regulations and Control Procedures

Tony Crouch

Market Inspector-United Kingdom

Taiex

23rd November 2006, Belgrade, Serbia.

Objectives of This Presentation• Explain how Marketing Standards are perceived in the UK

• Demonstrate the task we face enforcing regulation 1148/2001

• Establishing and maintaining a National Inspectorate

• Use of Risk assessment to manage priorities

• Equipment and Training

• Other key factors

• Summary

What Do Marketing Standards Mean for the UK Industry Today

• EU regulation 1148/01 is legally binding on the UK industry.• It is incorporated into UK law,(1964 Agriculture and

Horticulture act) and enforced by a government department. • All fresh regulated produce has to be graded to the specification

of the marketing standards and labelled on every package.• Produce imported from 3rd countries has to have a quality control

certificate to clear customs.• Produce exported has to have a quality control certificate to leave

the EU.• All produce at growers premises, in transit, in wholesale markets,

and in the retail shop must be labelled and meet the grade claimed.

• If after verbal and written warning a grower or trader continues to ignore the marketing rules, they will be prosecuted and fined.

Scale of the UK Industry

Import points.

• 20 major import points including airports (Heathrow) container ports(Tilbury, Southampton) and deep sea ports (Sheerness, Liverpool).

• Up to 200,000 consignments apply for inspection and clearance each year.

• 1,120,000 tonnes of regulated produce are controlled p.a.

• Risk based system =PEACH.

Scale of the UK Industry

Domestic enforcement.

• 35,000 inspection points on the data base including growers, distribution depots, wholesale markets, supermarkets, and retail shops

• 15,000 Inspections of goods are recorded in this area of work.

• Risk based system ICRAS

Key Points in Maintaining a National Inspectorate to Enforce EC Marketing Standards

• Harmonized application of decisions- achieved through initial and continuous training.(T&DC).

• Recruit the correct calibre of inspector- integrity, professionalism, knowledge of the industry, and proven people skills.

• Respect the industry as stakeholders and customers and establish regular dialogue with key players.

• Give the industry easy access to the rules, regulations and procedures.www.rpa.gov.uk click “HMI” link on index bar.

• Industry education and training.

Risk Assessment -Import• In UK 30 import inspectors, and 200,000

consignments p.a. To control.

• 1148/01 allows the use of risk assessment to manage this workload.

• All importers have to register on our internet based application system “PEACH”. This system developed with close co-operation with the industry.

• The importer puts in all the consignment details. This can be in the country of origin. The software automatically assess’ the risk.

• Green- importer prints own certificateAmber- inspector decisionRed- high risk, inspection needed.

• Random –System check –AIS check.

International Trade Single Window (ITSW)

• Exciting new development in conjunction with UK customs.

• Will reduce the burden on the industry –savings of £3.5 m per year.

• Consignments entered into PEACH in usual way.

• When certificate is produced it will receive a automatic licence verification (ALV).

• No paper copy will exist in future, a message sent to customs computer system will automatically allow release.

• Next step is to create a one application system to replace multiple application screens required by current disparate systems. Importer enters data once, the system takes it to the various control service computers.

Risk Assessment - Domestic• 35,000 inspection points – 25 inspectors managed using risk based

system ICRAS.

• Simple concept- each trader accrues points. The higher the points the higher up a league table they travel. Each Inspector has a table for their delegated geographical area.

• Points awarded -time since last visited (points are weighted –big firm x3 factor)- action taken on visit (e.g. labelling 500 pts Outgrading 2000 pts)-blame allocated if their produce actioned elsewhere in Marketing chain.

• Data uploaded daily but points refreshed on weekly basis. Regional managers can monitor remotely

Invest in Equipment and Technology

• The inspectors brain is the biggest asset, but good equipment and support is vital.

• All our inspections are recorded at point of examination on portable computers, and details uploaded twice daily. This keeps the risk assessment system accurate.

• EC standards are developing to include more objective testing criteria such as Brix levels, so all inspectors need access to measuring instruments.

Other Factors to Consider

• Quality standards are only the starting point.

• Specific extra requirements from supermarkets.

• Food safety, Phyto-sanitary, and hygiene guarantees.

• Traceability.

• Quality management systems.

• Drive by large retailers /supermarkets for a competitive advantage make them demanding customers.

• Organic production or voluntary assurance schemes to minimise use of chemicals.

Standards

Advise and educate the industry as to what these

are and how they can help facilitate trade with others in

the market place.

Industry

Ensure they know the penalties and the procedures. Seek to change their behaviours through dialogue, but use final sanction of prosecution.

Eye For The future

Attend International Standard setting meetings. Look for opportunity to add value to the staff you have.Safety, good record keeping, traceability, quality/ farm assurance schemes and accreditation.

Success

Summary

Inspectorate

Recruit the right calibre of staff. Train initially and continually to ensure uniform application of rules. Prioratise tasks to target key offenders